TeraWulf shifts revenue mix toward HPC leasing as bitcoin mining sales decline

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TeraWulf HPC revenue shift

Highlights

TeraWulf's Q3 revenue surged 51% year over year to $76.2 million, with HPC lease revenue climbing to nearly $63 million and bitcoin mining revenue plunging 69% to $13.2 million.
HPC leasing comprised 83% of Q3 total revenue, up from 14% a year ago, highlighting a rapid business shift toward infrastructure for large-scale data center customers.
Lake Mariner's active IT capacity reached 102 MW as of September 30, with 336 MW under construction, while Muskie campus expanded contracted power from 500 MW to 1 GW pending regulatory approval.

Third-quarter earnings show business model transition

According to The Block, TeraWulf said in its latest earnings release on Friday that third-quarter revenue rose 51% year over year to $76.2 million, driven by nearly $63 million in HPC lease revenue. That compared with $7.2 million in the same period a year earlier, while bitcoin mining revenue fell 69% to $13.2 million from $43.4 million.

The Nasdaq-listed company reported $709.9 million in net income attributable to shareholders for the quarter, including a $728.4 million non-cash gain tied to changes in the fair value of warrant and derivative liabilities. Operating loss widened to $88.2 million from $24.7 million a year earlier, and adjusted EBITDA fell to negative $12.8 million.

The results underline how quickly TeraWulf's revenue base is changing. HPC leasing now accounts for 83% of total revenue, up from 14% a year earlier, as the company builds out infrastructure for larger data center customers.

Capacity buildout expands in New York and Kentucky

At the Lake Mariner site in New York, TeraWulf said 102 MW of critical IT capacity is generating revenue as of Sept. 30, with another 336 MW under construction. The company expects its latest data center building at the site to begin generating rent in the fourth quarter, with another scheduled for early 2027.

At the Muskie campus in Kentucky, contracted power capacity has increased from 500 MW to 1 GW, pending regulatory approval. Chairman and Chief Executive Officer Paul Prager said in the earnings release that Lake Mariner is delivering contracted capacity and revenue, while the Justified project has the customer, credit support and construction framework to scale further, and Muskie provides a contracted path to 1 GW of power.

The growing U.S. AI data-center buildout is increasingly running into financing strain, construction delays, and power-supply constraints, raising questions about how quickly new compute capacity can actually come online. Our earlier article noted that only a minority of planned projects look credible amid higher funding costs, missed timelines, and mounting local and regulatory pressure around energy access.

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